Page 37 - ELT_15th July 2020_Vol 373_Part 2

2020 ] EXPORTS & IMPORTS UNDER FOREIGN TRADE POLICY A43

Penal action and placing of an entity in Denied Entity List (DEL)
(a) If an Authorisation holder violates any condition of such Authorisa-
tion or fails to fulfil export obligation, or fails to deposit the requi-
site amount within the period specified in demand notice issued by
Department of Revenue and/or DGFT, he shall be liable for action
in accordance with FT (D&R) Act, the Rules and Orders made there-
under, FTP and any other law for time being in force.
(b) With a view to raising ethical standards and for ease of doing busi-
ness, DGFT has provided for self-certification system under various
schemes. In such cases, applicants shall undertake self-certification
with sufficient care and caution in filling up infor-
mation/particulars. Any information/particulars subsequently
found untrue/incorrect will be liable for action under FTDR Act,
1992 and Rules therein in addition to penal action under any other
Act/Order.
(c) A firm may be placed under Denied Entity List (DEL), by the con-
cerned RA, under the provision of Rule 7 of Foreign Trade (Regula-
tion) Rules, 1993. On issuance of such an order, for reasons to be
recorded in writing, a firm may be refused grant or renewal of a li-
cense, certificate, scrip or any instrument bestowing financial or fis-
cal benefits. If a firm is placed under DEL all new licences, scrips,
certificates, instruments etc. will be blocked from print-
ing/issue/renewal.
(d) DEL orders may be placed in abeyance, for reasons to be recorded
in writing by the concerned RA. DEL order can be placed in abey-
ance, for a period not more than 60 days at a time.
(e) A firm’s name can be removed from DEL, by the concerned RA for
reasons to be recorded in writing, if the firm completes Export Obli-
gation/pays penalty/fulfils requirement of Demand Notice(s) is-
sued by the RA/submits documents required by the RA.
Import/Export through State Trading Enterprises
(a) State Trading Enterprises (STEs) are governmental and non-
governmental enterprises, including marketing boards, which deal
with goods for export and/or import. Any goods, import or export
of which is governed through exclusive or special privilege granted
to State Trading Enterprise (STE), may be imported or exported by
the concerned STE as per conditions specified in ITC (HS). The list
of STEs notified by DGFT is in Appendix-2J.
(b) Such STE(s) shall make any such purchases or sales involving im-
ports or exports solely in accordance with commercial considera-
tions, including price, quality, availability, marketability, transpor-
tation and other conditions of purchase or sale in a non-
discriminatory manner and shall afford enterprises of other coun-
tries adequate opportunity, in accordance with customary business
practices, to compete for participation in such purchases or sales. (c)
DGFT may, however, grant an authorization to any other person to
import or export any of the goods notified for exclusive trading
through STEs.
EXCISE LAW TIMES  15th July 2020  37